Market has absorbed the selling pressure of FIIs: Angel Broking

Views of Mr. Jay Purohit (Technical and Derivative Analyst, Angel Broking):

"Post a flat opening, the Nifty started moving higher from initial trades. However, strong selling pressure was witnessed in last couple of trading hours and as result, the index shrugged-off all its intraday gains. Eventually, the Nifty concluded the session a tad above 9600 mark with marginal losses over its previous close. At the same time, the open interest activity in both Nifty and BankNifty remained subdued.

On Nifty options front, except some build-up in 9600 - 9700 call options and 9450 put option; we hardly witnessed any meaningful activity in other strikes. Highest open interest in current series is placed at 9700 call and 9500 put options.

With a selling figure of Rs. 300 crores, FIIs have shorted index futures worth Rs. 2633 crores in last three sessions. As the result, their 'Long Short Ratio' has decreased from 85% to 79%. However, their previous longs formed in last couple of months are still intact in the system. The market has absorbed the selling pressure of FIIs without any major correction, which bodes well for bulls. At current juncture, the Nifty is trading around its strong support of 9500 - 9550 and any positive build-up may lead to a decent upmove in the index. Thus, traders are advised to remain vigilant and adopt stock centric approach to fetch better returns."

Source : Equity Bulls

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